As Jose Eduardo Dos Santos steps down after 4 decades of ruling Angola and his former Defense Minister, Joao Lourenco becomes the new President in the fourth Democratic elections of the country, the future of Angola remains under the control of the governing party, the MPLA.
If newly elected President Lourenco inherits a stable country with solid foundations for economic growth, it also has to deal with endemic social inequalities and an economy paralysed by its quasi total dependence on the oil sector – affected by the regular decline in crude oil prices – in detriment of other essential sectors which have been totally closed off to direct foreign investment.
Should President Lourenco choose the route of privatisation and drastically reduce the red tape Angola is infamous for, it could gain the much needed support from the IMF (International Monetary Fund) and the World Bank and restore trust in its currency.
Even prior to the elections, IBN witnessed that Angola was already taking concrete steps to lift restrictions on companies employing foreigners. The most significant changes which are most meaningful for IBN as a leading immigration specialist – and for our corporate clients who we assist outbound – are the lift of the 3 year cap on work permits and of foreigners to be paid in the local currency. This means that we will be able to assist our clients with less red tape involved and more flexibility.
IBN believes that this pragmatic approach makes good business sense and should reassure foreign companies and re-instate trust in the Government. This was confirmed during business interactions with some of our corporate clients with a long standing presence in Angola who have witnessed the positive impact of these recent measures first hand.
Could President Lourenco be the instigator of the next “Angolan Miracle”? The signs are there, time will tell and IBN will be watching!
Please do not hesitate to contact us for advice regarding immigration & visa, setting up business, property transfer & investment.
by Nadia Delport